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SEGMENT INFORMATION
 9 Months Ended
Sep. 27, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION
12. SEGMENT INFORMATION
In the fourth fiscal quarter of 2024, the Company announced an internal reorganization, combining two complementary divisions into one and realigning its customer facing organization. Our business is now organized and operated in two operating segments as discussed below. All prior periods have been recast to reflect the change. These segments share common business systems and processes, technology centers and technology roadmaps.
•The Materials Solutions segment, or MS, provides materials-based solutions, such as chemical vapor and atomic layer deposition materials, chemical mechanical planarization (“CMP”) slurries and pads, ion implantation specialty gases, formulated etch and clean materials, and other specialty materials that enable our customers to achieve better device performance and faster time to yield, while providing for lower total cost of ownership.
•The Advanced Purity Solutions segment, or APS, offers filtration, purification and contamination-control solutions that improve customers’ yield, device reliability and cost by ensuring the purity of critical liquid chemistries and gases and the cleanliness of wafers and other substrates used throughout semiconductor manufacturing processes, the semiconductor ecosystem and other high-technology industries.
The Company’s method for measuring profitability on a reportable segment basis is segment profit. Segment profit is defined as net sales less direct and indirect segment operating expenses, including certain general and administrative costs for the Company’s human resources, finance and information technology functions. The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties. Inter-segment sales are presented as an elimination below. The remaining unallocated expenses consist mainly of the Company’s corporate functions as well as interest expense, interest income, amortization of intangible assets and income tax expense.
The Company’s chief operating decision maker (“CODM”) is the President and Chief Executive Officer. For each of the reportable segments, the CODM uses segment profit (based on each segment’s target model) for determining the allocation of resources (including employees, financial, or capital resources) to the segments to achieve the Company’s strategic plan and to assess the performance of each segment by monitoring actual results against performance targets established in the Company’s annual budget and forecasting process. Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not regularly reviewed by the Company’s CODM.
Summarized financial information for the Company’s reportable segments is shown in the following tables for the three and nine months ended September 27, 2025 and September 28, 2024:
Three months ended
September 27, 2025
(In millions)MSAPSInter-segmentTotal
Net sales$348.6 $460.8 $(2.3)$807.1 
Cost of sales203.4 254.7 (2.3)455.8 
Operating expenses80.0 87.9 — 167.9 
Segment profit$65.2 $118.2 $— $183.4 

Three months ended
September 28, 2024
(In millions)MSAPSInter-segmentTotal
Net sales$346.7 $463.1 $(2.1)$807.7 
Cost of sales190.4 247.6 (2.1)435.9 
Operating expenses84.6 88.1 — 172.7 
Segment profit$71.7 $127.4 $— $199.1 

Nine months ended
September 27, 2025
(In millions)MSAPSInter-segmentTotal
Net sales$1,044.9 $1,334.6 $(6.8)$2,372.7 
Cost of sales584.9 735.3 (6.8)1,313.4 
Operating expenses247.3 277.1 — 524.4 
Segment profit$212.7 $322.2 $— $534.9 

Nine months ended
September 28, 2024
(In millions)MSAPSInter-segmentTotal
Net sales$1,039.0 $1,359.0 $(6.6)$2,391.4 
Cost of sales570.6 728.0 (6.6)1,292.0 
Operating expenses259.3 269.8 — 529.1 
Segment profit$209.1 $361.2 $— $570.3 

The following table reconciles total segment profit to income before income tax expense for the three and nine months ended September 27, 2025 and September 28, 2024:
Three months endedNine months ended
(In millions)September 27, 2025September 28, 2024September 27, 2025September 28, 2024
Total segment profit$183.4 199.1 $534.9 $570.3 
Less:
Amortization of intangible assets46.0 46.2 138.1 143.9 
Unallocated general and administrative expenses14.8 16.7 45.8 42.5 
Operating income122.6 136.2 351.0 383.9 
Interest expense47.9 51.6 151.3 162.7 
Interest income(1.8)(1.2)(5.1)(5.4)
Other (income) expense, net4.2 (0.2)5.3 17.1 
Income before income tax expense$72.3 $86.0 $199.5 $209.5 
The following tables summarize depreciation and capital expenditures for the Company’s reportable segments for the three and nine months ended September 27, 2025 and September 28, 2024:
Three months endedNine months ended
(In millions)September 27, 2025September 28, 2024September 27, 2025September 28, 2024
Depreciation:
MS$21.7 $22.3 $67.1 $68.2 
APS28.7 24.8 84.571.6 
Total depreciation $50.4 $47.1 $151.6 $139.8 

Three months endedNine months ended
(In millions)September 27, 2025September 28, 2024September 27, 2025September 28, 2024
Capital expenditures:
MS$28.1 $17.8 $89.2 $56.7 
APS38.7 64.4 152.0 151.4 
Total capital expenditures$66.8 $82.2 $241.2 $208.1 

In the following tables, net sales are disaggregated by customers’ country or region based on the ship to location of the customer for the three and nine months ended September 27, 2025 and September 28, 2024, respectively.
Three months ended September 27, 2025
(In millions)MS APSInter-segment Total
North America$67.3 $70.6 $(2.3)$135.6 
Taiwan74.3 111.9 — 186.2 
China60.4 117.5 — 177.9 
South Korea49.4 60.4 — 109.8 
Japan35.4 43.1 — 78.5 
Europe25.8 31.7 — 57.5 
Southeast Asia36.0 25.6 — 61.6 
$348.6 $460.8 $(2.3)$807.1 

Three months ended September 28, 2024
(In millions)MS APSInter-segmentTotal
North America$73.2 $91.0 $(2.1)$162.1 
Taiwan60.0 101.3 — 161.3 
China62.8 109.2 — 172.0 
South Korea53.3 52.0 — 105.3 
Japan34.0 43.2 — 77.2 
Europe25.5 42.6 — 68.1 
Southeast Asia37.9 23.8 — 61.7 
$346.7 $463.1 $(2.1)$807.7 
Nine months ended September 27, 2025
(In millions)MS APSInter-segment Total
North America$203.1 $232.2 $(6.8)$428.5 
Taiwan207.1 330.3 — 537.4 
China203.3 293.0 — 496.3 
South Korea151.4 168.5 — 319.9 
Japan99.6 131.3 — 230.9 
Europe74.2 102.7 — 176.9 
Southeast Asia106.2 76.6 — 182.8 
$1,044.9 $1,334.6 $(6.8)$2,372.7 

Nine months ended September 28, 2024
(In millions)MS APSInter-segmentTotal
North America$248.8 $274.5 $(6.6)$516.7 
Taiwan173.5 303.0 — 476.5 
China181.7 309.2 — 490.9 
South Korea150.6 156.9 — 307.5 
Japan93.0 126.5 — 219.5 
Europe87.7 122.8 — 210.5 
Southeast Asia103.7 66.1 — 169.8 
$1,039.0 $1,359.0 $(6.6)$2,391.4